The International Business and Finance Reader offers a solid foundation in major practical business decisions. The reader focuses on general patterns of international trade and the reasons behind internationalization of firms, and examines the international dimension of various functional areas. It is organized into six major sections: changing international ownership patterns, corporate strategy, basic financial decisions for multinational firms, taxation issues, and future developments. It also includes key terms, questions, and further reading suggestions.

Globalization

The term “globalization” is a broad term used to refer to the process of international trade. Through market reforms and the reduction of international trade barriers, a global economy has been created. Additionally, developments in transportation and communication technologies have made it possible for businesses to sell products and services across national borders. This process allows them to take advantage of price differences and arbitrage in various markets.

This process has created more opportunities than …